Current Attempt in Progress

At the end of her first year of university, Dorothy Taylor decided that she should start a business to help finance her education, so she

set up her own courier service. She invested savings of $$1,300$ in the company, which she called Sandhill Ltd$.$ In addition, her parents

lent the company $$5,100$ to help it get started. Since this was a business venture, Dorothy insisted on paying interest on this loan, and

her parents agreed to charge a rate of $6\%$ per year.

Dorothy then negotiated the purchase of a used cat for the business for $$8,400.$ The company made a down payment of $$3,300$ on the

car and financed the remainder of the purchase price at an interest rate of $9\%$ per year. Due to all of the kilometres that would be put

on the car while it was used in the courier business, Dorothy estimated that the car could be sold at the end of the summer for $$6,500.$

Sandhill began operations on May $1$ and continued until August $31.$ Although Dorothy did not keep any formal accounting records, at

the end of the summer she put together the following additional information related to the business:

During the summer, the company made payments of $$663$ on the car, which included interest of $$153$ and principal of $$510.$

No payments $($of either interest or principal$)$ were made on the loan from her parents.

Dorothy paid herself a salary of $$1,200$ per month for the four months that the business operated.

Payments for other operating costs $($including advertising, insurance, and gas$)$ totalled $$9,000.$ In addition, there were unpaid

bills totalling $$200$ at the end of August.

Courier charges collected from customers totalled $$20,800.$ In addition, customers still owed $$350$ for services performed in

the last two weeks of August.

After the close of business on August $31,$ there was a balance of $$9,362$ in the company's bank account, plus a "float" of $$75$ in

the car.

Prepare a statement of income for Sandhill for the four$-$month period ending on August $31.($Enter loss using either a negative sign

preceding the number e$.$g$.-45$ or parentheses e$.$g$.(45).)$

Sandhill Ltd$.$

Statement of Income

For the Four Months Ended August $31,2$XXX

Wages Expense

Wages Expense

$-9000$

Operating Expenses

Interest Expense $-$ Car Loan

Depreciation Expense

eTextbook and Media